Independent TD Mick Wallace is exploring possible alternatives to being bankrupted by a fund and also wants to see if he can save his family home, the High Court has been told.
Ms Justice Caroline Costello today agreed to adjourn the bankruptcy petition by Promontoria (Aran) Ltd fund to allow Mr Wallace pursue those matters.
The fund has brought the petition arising from a €2 million judgment obtained after the fund took over the TD’s debt to Ulster Bank.
Promontoria is owned by US fund giant Cerberus, the same fund that was at the centre of allegations made in the Dáil by Mr Wallace in relation to the acquisition of Nama’s €5.7 billion Northern Ireland portfolio. The substance of those allegations is now subject to investigations in the UK and US.
The loans taken over by Promontoria are linked to M&J Wallace, one of Mr Wallace’s pre-crash Dublin businesses, but are also understood to be backed by personal guarantees, leaving the TD liable if the business could not pay the debt.
The court was previously told, while Mr Wallace is entitled to anonymity at this stage of the bankruptcy process, he had waived that right.
When the matter first came before the court last month, Mr Wallace sought an adjournment to allow him engage with an insolvency practitioner. The matter was adjourned to today for the court to be updated on the matter.
On Monday, Edward Farrelly BL, for Promontoria, told Ms Justice Costello Mr Wallace’s counsel was looking for an adjournment of the application to December 19th. His side was anxious to get the matter on but was not objecting to the adjournment.
Keith Farry BL, for Mr Wallace told the judge his client was pursuing alternatives to bankruptcy.
A PIP had written to the fund and to Allied Irish Bank to see if his family home could be retained and a statement of affairs was also being prepared and would be ready for December 19th. It was also expected the AIB response would be before the court on that date.
His side hoped to have made “significant progress” in the matter by December 19th.
Until 2014, a TD would automatically lose their seat if declared bankrupt but that is no longer the case.
